Zee Learn slumps on profit booking

Zee Learn yesterday, on the back of its very good numbers for Q3FY17 had hit a new 52-week high at Rs.49.30 and today, profit booking after all the “expectation build-up” is down in the red. The stock is down almost 3% at Rs.45 levels.

The company actually posted very good numbers for the  current third quarter. Revenue showed a 14% (YoY) jump at Rs.25 crore. Keeping a tight leash on costs, EBITDA was up 38% at Rs.9 crore and margins improved to 35.1% from 29.1%. Net profit was up over 2.6 times at Rs.6 crore.

Its net profit for 9MFY17 is at Rs.22 crore and this has already surpassed entire FY16 net profit of Rs.15 crore. Clearly, this fiscal will be a bumper year.

Its equity is at Rs.32.07 crore and annualized EPS is at Rs.0.89 (FV of Re.1). The only irking factor in the stock is its ongoing corporate governance issue with Tree House.